THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. SHRI DINAKARA SUVARNA

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ITA/171/2020HC KarnatakaKAHC01055910201922 November 2022Bench: P.S.DINESH KUMAR,T.G. SHIVASHANKARE GOWDA3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that since the additions were deleted, the imposition of penalty based on those additions was not sustainable. Therefore, the appeal by the Revenue was dismissed.

What were the facts?

The Revenue appealed against an order of the ITAT concerning penalty. The additions made by the Revenue had previously been deleted by the High Court in a related appeal (ITA No.16/2015).

What were the issues?

The primary issue was whether penalty could be sustained when the underlying additions forming the basis of the penalty were deleted. The court also noted that the questions of law were rendered academic.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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ITA No. 171 of 2020

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF NOVEMBER, 2022 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE T G SHIVASHANKARE GOWDA INCOME TAX APPEAL NO. 171 OF 2020 BETWEEN: 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX, 1ST FLOOR, C.R.BUILDING, NANDIGUDDA ROAD, ATTAVARA, MANGALURU – 575 001. 2. THE INCOME TAX OFFICER, WARD-1(2), MANGALURU. …APPELLANTS (BY SRI. SANMATHI E I., STANDING COUNSEL) AND: 1. SHRI. DINAKARA SUVARNA, PRO: BALAJI CONSTRUCTION, 1-34-3017/1, SHESHAPPA COMPOUND, ASHOKNAGAR, MANGALURU – 570 006. PAN NO.AVWPS7175D. …RESPONDENT (BY SRI.CHANDRASEKHAR V., ADVOCATE)

Digitally signed by MALA K N Location: HIGH COURT OF KARNATAKA

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ITA No. 171 of 2020

THIS INCOME TAX APPEAL UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 24.07.2019 PASSED IN ITA NO.375/Bang/2018, FOR THE ASSESSMENT YEAR 2007-08, PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON’BLE COURT AS DEEMED FIT. (a) SET ASIDE THE APPELLATE ORDER DATED:24-07-2019 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, BANGALORE, IN APPEAL PROCEEDINGS NO.ITA NO.375/Bang/2018 [ANNEXURE – A] FOR THE ASSESSMENT YEAR 2007-08 AS SOUGHT FOR IN THIS APPEAL AND TO GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE.

THIS APPEAL, COMING ON FOR HEARING, THIS DAY P.S. DINESH KUMAR J., DELIVERED THE FOLLOWING:

JUDGMENT

Shri. Chandrasekhar, learned advocate for the assessee submits that the additions made by the Revenue have been admitted in ITA No.16/2015. This Court vide order dated 08.07.2022, has allowed the appeal and deleted the additions made by the Revenue.

2.

This proceedings pertains to the penalty imposed based on the additions. Since, the additions have been deleted, imposition of penalty is not sustainable.

3.

The above submission is not refuted by the learned advocate for the Revenue in the usual fairness.

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ITA No. 171 of 2020

4.

Therefore, this appeal by the Revenue must fail and accordingly, the appeal is dismissed.

5.

The appeal in ITA No.16/2015 having been considered on merits, the questions of law raised in this appeal are rendered academic in nature and hence not answered.

No costs.

Sd/- JUDGE

Sd/- JUDGE

GH List No.: 1 Sl No.: 73

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